Aiming to draw attention of big investors, both domestic and global, the Maharashtra government on Sunday launched its its new textile policy on the occasion of the Make In India Week, 2016.
The policy, which is based on the theme ‘Cotton to Cloth, Farm to Fashion’, has been chalked out keeping the three lakh farmers in the cotton belt, spread across 14 districts of Maharashtra, in mind. The government’s strategy to ensure increased participation by big investors in the state’s textile industry is to provide up to 25 to 30 per cent in incentives to self-financed investors.
After its success in Nandgaonpeth textile hub in Maharashtra’s Amravati district, the government is trying to do the same in Marathwada and north Maharashtra. In accordance with the government’s plans, it has decided to set up at least 20 textile hubs in the cotton belt of Vidarbha, Marathwada and north Maharashtra.
“We are emphasising on investments to strengthen linkages that would take into account the farmer who produces cotton to spinning of yarn to ready-made garments in industrial units, complete with innovative design and marketing,” Fadnavis said.
He said that no matter who invests in the state’s textile industry, each and stakeholder — from farmers to industrialists — would stand to gain fairly in their efforts to make textile a robust sector. “Despite being leading cotton growers, our export in this sector has remained in single digits, which needs to be addressed,” he said, adding, “Initiatives to provide water and competitive power tariff remain a challenge, which the government is set to aggressively pursue.”
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A textile hub in a cotton-cultivating district will provide advantages by means of bringing down the overall cost and alleviating the condition of farmers in drought-stricken areas, the CM said. Accordingly, global and domestic investors who show interest in these belts, will get special incentives of up to 10 per cent. Besides, self-financing investors who do not rely on major bank loans would also get special incentives for investment in these backward regions. In this regard, mention must be made of Swedish multinational retailer H&M has shown interest in partnering with the state government to tap into its textile potential.
According to Fadnavis, the response from investors in the state’s textile hubs, particularly in Vidarbha, has been very good. However, due to their overwhelming response, some have been put on hold for now, until further expansion. Stating that Maharashtra wil provide all facilities required for the setting up of textile hubs, the CM said, “Today, we are processing only 30 per cent of the total cotton cultivated in our state, whereas 70 per cent remains unprocessed due to lack of infrastructure. This results in poor dividends to the farmers and industries. After taking over the government, we have given permission to textile hubs complete with raw material processing to garments units.
“Maharashtra, with maximum cotton cultivation, can help India become a textile leader in the world,” he maintained.
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